OREANDA-NEWS. Fitch Ratings has affirmed two classes of Salomon Brothers Mortgage Securities VII, Inc., (SBM7) commercial mortgage pass-through certificates series 1999-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are a result of stable performance on the non-specially serviced loans since last review. Three loans remain in the transaction: one defeased (66%), one specially serviced (20.6%) and one performing loan (13.4%).

As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 99.3% to \$5.3 million from \$734.9 million at issuance. Three loans remain in the pool from the original 213 loans. Per the servicer reporting, one loan (66% of the pool) is defeased. Interest shortfalls are currently affecting classes L and M.

The specially serviced loan is secured by a 53,000 square foot (sf) mixed use property (retail, office and residential) located in Troy, NY. The residential portion of the property was operated as an extended stay hotel on the upper floors. The loan transferred to special servicing in December 2008 due to payment default. Both the borrower and loan guarantor subsequently filed for bankruptcy. An approved bankruptcy plan of reorganization was implemented in May 2012, which included a payment plan to reduce the subject loan balance and provide support for loan payoff by the original loan maturity of April 2017. According to the February 2015 distribution report, the loan is delinquent and the special servicer is pursuing a foreclosure strategy. Fitch inquired with the special servicer as to the status of resolution and is awaiting a response.

The largest loan in the pool is defeased through its first open date of Feb. 18, 2016. The remaining loan in the pool is secured by a 96 unit multifamily property located in Oklahoma City, OK. The fully amortizing loan matures in 2028. Performance at the property has been stable with 98% occupancy and a DSCR of 2.06x as of year-end 2014.

RATING SENSITIVITIES

The Rating Outlook on class K remains Stable. No downgrade or further rating action is expected on class K, as it is likely to pay in full over the next 12 months from defeasance and scheduled monthly principal payments. An upgrade is not warranted as this class previously incurred interest shortfalls. Class L has already incurred losses. The recovery estimate on class L may change if losses on the specially serviced loan are greater than expected.

Fitch affirms the following classes as indicated:

--\$797,401 class K at 'Asf'; Outlook Stable.
--\$4.2 million class L at 'Dsf'; RE 65%.

The class A-1, A-2, B, C, D, E, F, G, H and J certificates have paid in full. Fitch does not rate the class M certificate. Fitch previously withdrew the rating on the interest-only class X certificate.